Entrepreneurship as a Catalyst for Innovation and Economic Growth in Ghana

Abstract

This project explores the role of entrepreneurship as a key driver of innovation and economic growth in Ghana, focusing on how entrepreneurs contribute to job creation, technological advancement, and financial resilience. The study examines the historical context, institutional frameworks, government policies, innovation trends, and socio-economic impact of entrepreneurship in Ghana. It also investigates entrepreneurs' challenges and provides data-driven insights and recommendations for policy and practice. A mixed-method approach was adopted, combining literature review, theoretical analysis, and survey data from 25 entrepreneurs across various sectors, including technology, retail, agriculture, services, and manufacturing. The survey captured demographic details, motivational factors, challenges encountered, perceptions of government support, innovation levels, and future outlooks.

Key findings reveal that: Young people (ages 21–30) are highly active in entrepreneurship, driven by income, independence, and innovation motives. There is near gender parity in participation, though women face more significant barriers, particularly in access to finance and institutional support. Many entrepreneurs report difficulties accessing finance, citing high interest rates, lack of collateral, and limited credit facilities. Though some benefit from training and tax incentives, government support is perceived as inconsistent and insufficient. Innovation is present, especially in tech sectors, but remains uneven across regions and industries. Despite systemic challenges, the entrepreneurial community in Ghana is mainly optimistic about the future.

 The study concludes that entrepreneurship has immense potential to transform Ghana’s economy but requires deliberate and inclusive policy interventions. General and policy-specific recommendations include expanding access to affordable finance, streamlining regulatory frameworks, promoting inclusive entrepreneurship (especially for women and youth), and investing in innovation infrastructure. In sum, the project underscores the importance of entrepreneurship in shaping Ghana’s development trajectory and calls for sustained public-private collaboration to create an enabling environment where entrepreneurs can thrive and meaningfully contribute to national growth.